Answer: Production and consumption occur simultaneously
Explanation:
Services are intangible quantities that possess value and can be traded, services cannot be stored therefore it most times is produced and consumed at the same time.
Answer:
C) Around $56,100
Explanation:
total maintenance costs should be:
<u>year</u> <u>cost</u>
1 $0
2 $0
3 $0
4 $3,500
5 $5,250
6 $7,000
7 $8,750
8 $10,500
9 $12,250
10 $14,000
11 $15,750
12 $17,500
to determine the present value of the 12 year annuity we can use an excel spreadsheet and the present value function:
=PV (6%,select the 12 cells) = $56,099.39 ≈ $56,100
To know how much will be you collection worth when you retire
in the year 2064, we will use the formula of the future value or FV.
To find the FV of a lump sum, we use:
<span>
FV = PV(1 +r<span>)^t where,</span>
t = 2064 – 1952 = 112
r = 4.5 x 100 = 0.45
PV = $54
Solution:
t<span>FV = $54(1.045)^112 = $7471.68</span></span>
Answer:
What is the best way to get his service to his target customers?
Explanation:
Answer:
c. 32.99%
Explanation:
Risk yield = bond yield*(1 - Federal tax rate)
6.50% = 9.70%*(1 - Federal tax rate)
1 - Federal tax rate = 6.50%/9.70%
Federal tax rate = 1 - 6.50%/9.70%
= 32.99%
Therefore, The federal tax rate that you are indifferent between the two bonds is 32.99%
